Mexico and Indonesia Have Discussed LNG Supply
Mexico aims to expand its role as a global LNG supplier through new talks with Indonesian energy officials.
Updated on Sept. 27, 2026 in Oil and Gas
Live Poll
Would you switch your household cooking fuel from propane to natural gas if available?
Mexico's energy minister Luz Elana Gonzalez Escobar recently held talks with Indonesian officials regarding potential liquefied natural gas (LNG) supplies. The discussions follow Indonesia's interest in diversifying its energy imports and transitioning household fuel sources.
Why it matters
Indonesia is actively seeking new LNG suppliers to support its shift toward domestic natural gas consumption and away from liquefied petroleum gas. For Mexico, securing a new international partner could provide a strategic outlet for production from its burgeoning LNG export facilities.
Mexico's Energia Costa Azul facility features a Phase One capacity of 3.25 million tonnes per year, with a potential Phase Two expansion of 12 million tonnes per year. Indonesia's domestic infrastructure includes a new mini-LNG plant in Tuban with a 55,300 tonnes per year capacity.
The players
Luz Elana Gonzalez Escobar
She serves as the energy minister for Mexico and is leading diplomatic efforts to secure new export markets for the nation.
New Fortress Energy
This energy company operates the Altamira FLNG facility that helps drive Mexico's natural gas export capabilities.
Sempra
The company is responsible for the Energia Costa Azul project, which represents a significant infrastructure investment in Baja California.
TotalEnergies
This major global energy firm is involved in shipping liquefied natural gas cargoes from Mexican export terminals.
The details
Mexico began exporting LNG in 2024, supported by facilities like the New Fortress Energy Altamira FLNG and the Energia Costa Azul site in Ensenada, Baja California. While Sempra experienced delays at the Costa Azul plant due to compressor damage, the site successfully exported its first cargo via TotalEnergies in July 2026.
Timeline
Mexico began exporting LNG in 2024.
Indonesia launched a mini-LNG plant in Tuban in June 2026.
Energia Costa Azul began exporting gas in July 2026.
Talks between Mexico and Indonesia were reported on September 23, 2026.
Commercial operations at Energia Costa Azul are expected by the end of 2026.
Market Landscape
The diplomatic outreach reflects a broader effort by Mexico to capitalize on the 2026 commissioning of the Energia Costa Azul facility. By aligning with Indonesia, Mexico seeks to secure a foothold in the competitive Pacific LNG market against established regional exporters.
For the average consumer in either nation, these negotiations primarily impact long-term energy security and the stability of fuel pricing. Indonesian households specifically may see shifts in domestic cooking fuel availability as the nation transitions away from older LPG systems.
The takeaway
These high-level discussions highlight how emerging LNG exporters are pivoting to meet the specific domestic energy needs of rapidly industrializing nations. Diversifying trade routes remains a primary strategy for countries looking to balance energy independence with stable supply chains.
Further reading
For broader trends in global energy trade, visit the Oil and Gas section.
Source note: This article includes information reported by Intellinews.
Live Poll
Would you switch your household cooking fuel from propane to natural gas if available?
